Market Round-up for the Week Ended 020922
Key Highlights
- The equities market recorded Mixed performance – the listed equities market, NGXASI, recorded a +0.63% gain WoW and the NASD OTC closed positive with a +0.16%
- The IEFX rate closed positive and the NAFEX rate closed positive.
- The BDC rates closed flat.
- The Brent Crude Oil price and WTI Crude Oil price moved down at the end of the week.
- The FMDQ Debt Market Size closed negative
- AFEX ACI and AEI closed negative.
- Equity
NSE
- The NGXASI inched up by +0.73% W-o-W. On top gainer and loser sector indices, NSE MERIVAL sectors closed positive with +41%, while NSE GROWTH closed negative with -0.51%W-o-W.
- During the week, the Gote Index closed positive with +0.11% while the Toni Index closed positive by +1.55% W-o-W.
| Market Performance | |||
| Sectors | 26-Aug-22 | 02-Sep-22 | WoW Chg |
| NGX ASI | 49,682.15 | 50,045.83 | 0.73% |
| NSE-30 | 1,772.42 | 1,784.67 | 0.69% |
| NSE Consumer Goods | 591.51 | 603.38 | 2.01% |
| NSE Banking | 384.55 | 389.22 | 1.21% |
| NSE Insurance | 180.70 | 180.79 | 0.05% |
| NSE Oil and Gas | 530.15 | 533.59 | 0.65% |
| NSE LII | 3,070.65 | 3,093.55 | 0.75% |
| NSE-IND | 1,770.60 | 1,794.65 | 1.36% |
| NSE-ASeM | 658.99 | 658.99 | 0.00% |
| NSE Pension | 1,697.10 | 1,714.89 | 1.05% |
| NSE Premium | 4,476.61 | 4,485.87 | 0.21% |
| NSE Main Board | 2,286.02 | 2,311.16 | 1.10% |
| NSECG | 1,217.54 | 1,225.54 | 0.66% |
| NSEAFRBVI | 889.02 | 901.06 | 1.35% |
| NSEAFRHDYI | 3,026.84 | 3,048.22 | 0.71% |
| NSEMERIGRW | 2,210.29 | 2,216.82 | 0.30% |
| NSEMERIVAL | 2,055.91 | 2,105.56 | 2.41% |
| NSEGROWTH | 1,673.86 | 1,665.26 | -0.51% |
| Dangote Index | 128.25 | 128.39 | 0.11% |
| Elumelu Index | 106.78 | 108.44 | 1.55% |
Source: NSE
NASD
The NASD USI closed positive with a +0.16% gain W-o-W
Market CAP closed positive with a +0.16% gain W-o-W
| Parameter | 26-Aug-22 | 02-Sep-22 | WoW Chg |
| USI | 760.92 | 762.12 | 0.16% |
| MKT Capitalization (Bn) | 1,001.69 | 1,003.27 | 0.16% |
| Volume Traded | 198,914.00 | 21,900.00 | -88.99% |
| Value Traded (000) | 4,953,431.00 | 753,550.00 | -84.79% |
| Deals Executed | 9.00 | 8.00 | -11.11% |
Source: NASD Plc
Debt Market Size
The FMDQ Debt Market Size moved up by +0.76% to close at N29.26trn
| Debt Market Size as @ AUGUST 19, 2022 | |||
| Index | 02-Sep-22 | 26-Aug-22 | % Chg |
| Debt Market Size | 29.26 | 29.04 | 0.76% |
- Commodities
Brent crude oil prices moved down by -4.86% W-o-W to $94.54 per barrel.
WTI moved down by -3.86% W-o-W to $88.64 per barrel as of the time of writing this report. (5.36pm)
| Commodity | 22-Sep-22 | 26-Aug-22 | 31-Dec-21 | Weekly Chg | YTD Chg |
| Brent | 94.54 | 99.37 | 78.53 | -4.86% | 20.39% |
| WTI | 88.64 | 92.2 | 75.89 | -3.86% | 16.80% |
| Gold | 1725.4 | 1748.8 | 1827.5 | -1.34% | -5.59% |
| Silver | 18.03 | 18.725 | 23.265 | -3.71% | -22.50% |
| Platinum | 823.3 | 855.1 | 958 | -3.72% | -14.06% |
| Palladium | 2029.5 | 2115 | 1883.5 | -4.04% | 7.75% |
| CNBC, | |||||
AFEX Indices
ACI moved down by -1.34% W-o-W to close at 439.14 and the AEI moved down by -1.15% W-o-W to close at 185.29
| Afex Indices | |||
| Index | 02-Sep-22 | 26-Aug-22 | % Chg |
| ACI | 439.14 | 445.12 | -1.34% |
| AEI | 185.29 | 187.44 | -1.15% |
AFEX Commodities
Maize remained flat to close at N193.7 and Paddy Rice moved up by +3.13% to close at N252.9
| Afex Commodity Prices | |||
| Commodities | 02-Sep-22 | 26-Aug-22 | % Chg |
| Maize | 193.7 | 193.7 | 0.00% |
| Sorghum | 298.65 | 295.54 | 1.05% |
| Cashew | 689.88 | 689.88 | 0.00% |
| Cocoa | 1193.33 | 1193.33 | 0.00% |
| Ginger | 1020.64 | 1020.64 | 0.00% |
| Sesame | 800 | 800 | 0.00% |
| Soybeans | 391.89 | 391.89 | 0.00% |
| Paddy rice | 260.81 | 252.9 | 3.13% |
| Wheat | 380 | 380 | 0.00% |
Source: AFEX
- Forex
The NAFEX closed positive and the IEFX rates closed positive.
BDC Rate closed flat
| FX | 02-Sep-22 | 26-Aug-22 | % Chg | 31-Dec-21 | YTD Chg |
| I & E | 431.5 | 430.05 | -0.34% | 435 | +0.80% |
| BDC | 700 | 700 | 0.00% | 568 | -23.24% |
| NAFEX | 428.9 | 428.44 | -0.11% | 414.45 | -3.49% |
| Source: FMDQ, CBN, Everdon | |||||
Fidelity Bank Plc Posts Impressive H1 2022 Results as Profits Hits N25.1bn
Leading financial institution, Fidelity Bank Plc, has released its H1 2022 results recording a remarkable 21.6% growth in profit to N25.1bn as well as decent growth in most key ratios.
According to the report released on the Nigerian Stock Exchange (NGX) on Tuesday, 30 August 2022, the bank grew Total Deposits by 13.1% YTD to N2,290.1bn from N2,024.8bn in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 26.1% YTD to N1,902.4bn and now represents 83.1% of total deposits from 74.5% in 2021FY, which explains the drop in funding cost.
“We are delighted with our H1 2022 performance which showed strong growth across key performance indices. With improved efficiency and customer experience around our network, customer transactions have grown considerably as we optimize our balance sheet and build up a large stock of stable low-cost deposits”, stated Fidelity Bank’s CEO, Mrs. Nneka Onyeali-Ikpe.
Gross Earnings increased by 37.9% YoY to N154.8bn on account of 52.9% growth in interest income to N136.2bn from N89.1bn in H1 2021. The increase in Interest Income was driven by improved yield on earnings assets and 14.9% YTD expansion in earnings base to N2,546.5bn.
Similarly, Net Interest Margin improved to 6.4% from 4.7% in 2021FY, due to a combination of improved yields on average earning assets and a decline in average funding cost. Average yields on earning assets increased by 211bps YoY to 11.5% while average funding cost declined by 84bps to 4.0% YoY, which resulted in 50.4% growth in net interest income to N75.6bn.
The release of the half year results coincides with the bank’s recent announcement on expanding to the United Kingdom with its proposed purchase of Union Bank UK.
Commenting on the proposed acquisition, Onyeali-Ikpe said: We recently executed a binding agreement for the acquisition of 100.0% equity stake in Union Bank UK Plc in line with our strategic objectives and business expansion drive. Union Bank UK offers a compelling synergy we hope to build on, to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services.
On the back of the positive H1 2022 performance, the board of fidelity bank approved an interim dividend of 10k per share, making it the first time the bank will pay an interim dividend in its 34years history.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
